IndusInd Bank shares tank over 4% on RBI move

Shares of IndusInd Bank fell over four per cent today as foreign investors would now have to get prior permission from the Reserve Bank for buying stocks in the company as such investment limit in the entity has reached the trigger limit.

The bank’s stock ended the day 4.48 per cent lower at Rs 488.95 on the BSE. During the day, its scrip plunged 4.66 per cent to Rs 488.

At the NSE, the stock closed with a loss of 4.32 per cent at Rs 490.05.

The Reserve Bank of India (RBI) had yesterday said that overseas shareholding through foreign institutional investors, NRIs, persons of Indian origin or via foreign direct investment in IndusInd Bank has reached the trigger limit.

“Hence, further purchases of equity shares of Induslnd Bank would be allowed only after obtaining prior approval of the Reserve Bank of India,” RBI had said in a release.

Under the portfolio investment scheme, FIIs are allowed to buy up to 49 per cent of the paid-up capital in the bank through primary or secondary markets subject to aggregate foreign investment limit not exceeding sectoral cap of 74 per cent.